Interest in geothermal energy originated in Iran when James R. McNitt, a United Nations geothermal expert, visited the country in December 1974. In 1975, a countract among the Ministry of Energy, ENEL (Entes Nazionale per LEnergia Elettrica)of italy and TB (Tehran Berkeley) of Iran was signed for geothermal exploration in the north-western part of Iran. In 1983, the result of investigations defined Sabalan, Damavand, khoy-Maku and Sahand regions as four prospected geothermal sites in northwestern Iran.
Four potential geothermal areas in northwestern Iran
Amid the 1990s, following a long gap, the growing needs to explore the clean sustainable sources of energy resulted in the setting up of specialized state-run establishments such as Electric Power Research Center (EPRC) and Renewable Energy Organization of Iran (SUNA).
During recent years, the latter as an affiliate of MOE has been effectively engaged in the management and execution of a variety of renewable energy projects including geothermal projects. This company plays a fundamental administrative role in most of the nationwide geothermal projects and turns over jobs to both government and private sectors as its executive arms.
Over the past decade, in parallel, SUNA has also conducted a series of countrywide potential investigation studies in order to evaluate appropriate zones for future investment particularly aiming at direct-heat utilizations in the remote areas bearing weaker economies. Ten geothermal potential sites in Iran were defined in addition to four previously defined areas in northwestern part.
In recent years (from 2001 onward), efforts have been made to publicize the concept of direct use for agricultural, fish farming and greenhouse purposes at the level of government authorities in Iran. A project, to publicize geothermal heat pumps, was initiated from 2004 and five geothermal heat pumps were installed in different parts of country for cooling and heating purposes.

The geothermal resources map of Iran
The idea of power generation from Sabalan Geothermal Prospect (Northwest Sabalan geothermal field) was initially proposed in 1994; thereafter emphasis has been put onto this field as an eminent priority. Upon detailed geo- based survey conducted by the joint collaboration of SUNA of Iran and Sinclari knight Mers Ltd. (SKM) of New Zealand within the time frame of 1998 2005, NW Sabalan geothermal field was recognized satisfactorily as a potential reservoir for power generation purposes.
Based on their proposal, the exploratory drilling of three exploration wells carried out in 2002-2004.
Numerical modeling of the reservoir was accomplished and the capacity of the filed was approved to install a 55-MW geothermal power plant.
Development of the sabalan geothermal field is continuing with drilling of 17 more exploration and productions wells since June 2008 and 2wells are finished with promising results (Feb.2009).